5 ways to drive maximum savings
with your freight management program
An educational event sponsored by OptiFreight® Logistics
Marc Mullen
Vice President/General Manager, OptiFreight® Logistics
May 12, 2015
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
Marc Mullen
Vice President/General Manager
OptiFreight® Logistics
2
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
Mike Walker
System Director, Centralized Purchasing
3
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
What we’ll reveal today
4
•
Why close collaboration is essential
to success
•
5 ways to drive maximum savings
•
How to identify a strong freight
management program
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
What is freight management?
Discounted
rates
5
Volume
savings on
shipping
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
See your
spend to
save even
more
The power of collaboration
The stronger our
collaboration,
the greater your
success
6
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
Discounted rates are just the beginning
Rate
Discounted
rates
7
Managed
freight
volume
Savings
Continuous
improvement
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
Overall
freight
management
value
The difference program participation makes
$39,678
Range of opportunity*
compared to carrier list price
• No data exchange
• Limited compliance
• No outbound services
• Only certified inbound volume
• Participate in all service
offerings: inbound, outbound
and LTL
• Participate in data exchange
• Include a PO Comment for
maximum program participation
*Based on internal OptiFreight® Logistics data analysis – savings compared to list price.
8
$107,034
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
Presence Health
$713,161 saved*
12-month results compared
to carrier list price
*Based on Presence Health data -- list price comparison: April 2014 through March 2015.
9
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
5 ways to drive maximum savings
10
1
Supplier participation
2
Employee participation
3
Mode optimization
4
Large freight
5
Advanced analytics
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
5 ways to drive maximum savings
Maximize supplier participation
•
•
•
11
Provide freight history
Include a PO Comment every time
Communicate with suppliers
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
1. Maximize supplier participation
47%*
average savings
per package
•
•
Share data with freight management program
• Review every invoice over $50
Pressure three ways: you, freight management program and GPO
Most suppliers aren’t going to pursue the savings for you!
*Presence Health saved an average of 47% per inbound package through OptiFreight® Logistics from
January 1, 2014 to December 31, 2014. Individual customer savings may vary.
12
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
5 ways to drive maximum savings
Improve employee participation
•
•
13
Promote education
Use an online portal
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
2. Improve employee participation
42%
average savings
per package
•
Look at every single freight bill • Send employee “reminders”
• Make it part of your culture
*Presence Health saved an average of 42% per outbound package through OptiFreight® Logistics from
January 1, 2014 to December 31, 2014. Individual customer savings may vary.
14
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
5 ways to drive maximum savings
Increase mode optimization
•
•
15
How suppliers and employees can
save you even more
The key to mode optimization
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
3. Get in the zone and save even more
Next day delivery as
overnight — but at ground
service rates!
*Map is a representation of a transit map Ground Service area. Estimated delivery times may
vary by individual supplier.
16
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
5 ways to drive maximum savings
Remember your large freight
•
•
•
17
Save on capital improvements
Save on new equipment
More keys to savings
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
4. Remember your large freight
35%
average savings
per shipment
•
Drive as much volume as possible • Focus on capital equipment
• Pick up the phone
*Presence Health saved an average of 35% per large freight shipment through OptiFreight® Logistics from
January 1, 2014 to December 31, 2014. Individual customer savings may vary.
18
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
5 ways to drive maximum savings
Use advanced analytics
19
•
Gain full visibility
•
Benchmark performance
•
Leverage Big Data
•
Reveal the way to hidden savings
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
5 ways to drive maximum savings
20
1
Supplier participation
2
Employee participation
3
Mode optimization
4
Large freight
5
Advanced analytics
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
“Must-haves” for your freight
management program
21
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
“Must-haves” for your program
Program
scale and
reach
22
Advanced
data and
analytics
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
Healthcare
industry
expertise
Why OptiFreight® Logistics?
23
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
Making a real cost difference
21,000
$200 million
active facilities*
saved in 2014*
2,000
11.5 million
healthcare providers*
shipments*
Source: *Based on shipments through OptiFreight® Logistics from January 1 through December 31, 2014.
Individual savings may vary.
24
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
Three ways we deliver
A comprehensive
program
25
Visibility
and control
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
Expertise
and
proactive
support
OptiFreight® Logistics: Program scale and reach
Full breadth of services across the continuum of care
Serving
multiple
customers
Hospital
Pharmacy
Laboratory Surgery center
Global
Logistic
solutions
Small parcel
Large freight
Physician office
Government
International
Hazardous
Veterinary
White glove
(inbound and
outbound)
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Home Health
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
Long-term care
Blood and tissue bank
Academic
Home delivery
Analytics/reporting
Temperature
sensitive
OptiFreight® Logistics: Advanced data and analytics
Visibility and control
• Proprietary data analytics
• Shipping service trends
• Benchmark your program
performance
• Advanced outbound
shipping tool
• Customized program
reporting
27
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
Expertise and proactive support
IT
Customer care
Vendor
relations
Implementation
OptiFreight®
Logistics
Analytics
management
Account
managers
Logistics
solution
28
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
Mike Walker, Presence Health
email: mike.walker@presencehealth.org
Q&A
Marc Mullen, Cardinal Health
email: marc.mullen@cardinalhealth.com
OptiFreight® Logistics
phone: 866.457.4579 option 1
29
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.
Thank you!
30
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,
ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners.